Hariprasad K, research analyst and founder of Livelong Wealth: After two modestly bullish sessions, the index could look to extend its near-term upside momentum, provided early gains continue. As the market approaches higher levels, traders are expected to remain selective, focusing on stock-specific opportunities rather than broad buying. Sustained strength will be key to maintaining the positive trend, while the inability to maintain early gains could lead to consolidation.
“IT stocks are likely to remain in sharp focus as the sector has been under continued pressure over the past week due to concerns about AI-driven disruption to traditional IT service models,” he added.
Analysts expect the market to remain volatile. However, third-quarter results were better than expected, analysts said.
Emkay Global Research said the positive earnings trend for Q3’26 reinforces their positive stance on Indian equities. Despite the hit to the labor market, the BSE-500 delivered PAT growth of 16%, outperforming the Nifty 50 (8%).
“We remain bullish on Indian equities, with the announcement of the India-US trade deal marking a turning point for the markets. We maintain a Nifty target of 29,000 for December 26, with SMID lenders, new-age/internet companies and discretionary consumption being our favorite themes,” it added.
According to the WhiteOak Capital Mutual Fund, its internal model – the Market Valuation Index – has fallen from 100.5 in December 2025 to 99 in January 2026. The Market Valuation Index uses primary fundamental indicators such as price-to-book value (P/B), the value adjusted for return on equity (ROE), the ratio of government bond yield to earnings yield. It also includes an overlay of the Volatility Index (VIX) and a ‘Hold Philosophy’ to account for the volatility and strength of the trend respectively.
As of January 31, 2026, WhiteOak Capital Balance Advantage Fund net equity has increased from 59.2% in December 2025 to 65.89% in January 2026, the fund said.
Meanwhile, Asian shares rose in early deals on Wednesday.
Published on February 18, 2026
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